So when the government seized MegaUpload's servers, the cloud's clients lost access to their digital property.

"Even worse, the government admitted that it has accessed Mr. Goodwin's Megaupload account and reviewed the content of his files. By doing so, the government has taken a significant and frightening step. It apparently searched through the data it seized for one purpose when its target was Megaupload in order to use it against Mr. Goodwin, someone who was hurt by its actions but who is plainly not the target of any criminal investigation, much less the one against Megaupload. "

->> That's more a matter of making sure you have read the contract with the provider than anything else. FWIW, Megaupload was not a cloud provider; it provided storage as a service and didn't go to any lengths to protect user data/privacy/etc. If you're worried about files being stolen, just encrypt them. Super easy to do.

Phil- If you use wifi or cell, you're much more vulnerable than your average cloud provider. WPA/WEP/... all have well-known exploits or weaknesses. Recent cell phones are probably the most secure just because the hardware is less common.

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